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NEW QUESTION: 1
Your primary Security Management Server runs on GAiA. What is the easiest way to back up your Security Gateway R76 configuration, including routing and network configuration files?
A. Run the command pre_ upgrade verifier and save the file *.tgz to the directory c:/temp.
B. Using the command upgrade export.
C. Copying the directories $FWDIR/conf and $FWDIR/lib to another location.
D. Using the native GAiA backup utility from command line or in the Web-based user interface.
Answer: D

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Which method allows you to load a file from the user's hard drive into Flash Player 10 directly, without uploading it to a remote server?
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B. The load() method of a FileReference object
C. The upload() method of a FileReference object
D. The browse() method of a FileReference object
Answer: B

NEW QUESTION: 3
A corn farmer has committed to sell 20,000 bushels of corn in November. The spot price has a standard deviation of 20 cents per bushel, and its correlation with the December futures prices is 0.9. The futures contract is for 5000 bushels and has a standard deviation of 24 cents per bushel. What should the corn producer do if he/she wishes to hedge the risk of price movements between now and November?
A. Sell 3 December corn futures contracts, and close these out in November when he/she sells the corn
B. Sell 4 December corn futures contracts, and close these out in November when he/she sells the corn
C. Buy 4 December corn futures contracts, and close these out in November when he/she sells the corn
D. Buy 3 December corn futures contracts, and close these out in November when he/she sells the corn
Answer: A
Explanation:
Explanation
We calculate the minimum variance hedge ratio as 0.9*20/24 = 0.75; and multiply this by the ratio of the
[units required to be hedged] to the [units per futures contract], ie 0.75*20000/5000 = 3. Therefore the right quantity of contracts to sell is 3 contracts. Since the corn farmer has an obligation to sell in November, he or she can sell the futures now and lock a price in. The price locked in will be equal to the futures price, plus the basis (ie the difference between the spot and the futures price) in November.
Therefore the correct answer is to sell 3 December corn futures contracts and close these out prior to delivery in November when the November spot price will be realized. If prices have fallen, the loss on the spot trade will be made up by the profit on the hedge in the form of the futures, and also the other way round.